Corporate Governance in Colombia

image of Corporate Governance in Colombia

This review of Corporate Governance in Colombia was prepared as part of the process of Colombia's accession to OECD Membership. The report describes the corporate governance setting for both listed companies and the state-owned sector (SOEs). The review then examines the legal and regulatory framework and company practices to assess the degree to which the recommendations of the G20/OECD Principles of Corporate Governance and the OECD Guidelines on Corporate Governance of State-Owned Enterprises have been implemented. The review finds that Colombia's framework for the corporate governance of listed companies is largely consistent with the Principles, although some companies have been reluctant to implement some of the good practices recommended in Colombia's national corporate governance code. For SOEs, the report recognises substantial reforms undertaken during the review process to adopt an ambitious national ownership policy. Reforms have included establishing an ownership co-ordination unit and more transparent reporting on SOE performance, and removing ministers from SOE boards and establishing more transparent board nomination processes aimed at enhancing the qualifications of board members. The report seeks continuing efforts to consolidate these reforms and to implement plans announced in the national ownership policy.


Review against Core Corporate Governance Principles

This chapter assesses Colombia against individual recommendations of the Principles of Corporate Governance and Guidelines on Corporate Governance of State-Owned Enterprises. It follows the structure of the five "core corporate governance principles" as set out in the Roadmap for the Accession of Colombia to the OECD Convention: 1) shareholder rights and equitable treatment; 2) requiring timely and reliable disclosure in accordance with internationally recognised standards of accounting, auditing and non-financial reporting; 3) establishing effective separation of the government's role as owner of state-owned companies and its role as regulator; 4) ensuring a level playing field in markets where SOEs and private sector companies compete in order to avoid market distortions; and 5) recognising stakeholder rights and the duties, right and responsibilities of corporate boards.


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